LyrArc Article Gist
Anup Srivastava, a professor at the Kellogg School of Management, Northwestern University, says Facebook is worth about $25 billion. Aswath Damodaran, a professsor of finance at the Stern School of Business, New York University, is also skeptical and can't justify the valuation at 108 times earnings.

LyrArc Article Gist
After the hearing on November 18, 2007, in the Senate in front of the Banking Committee, most senators remained unconvinced. Prof. Morici of the University of Maryland and some senators including the senator from Tennessee asked tough questions about the automakers business model and viability going forward and some senators voiced deep concern about the automakers resistance to better fuel efficiency standards. The testimony given in advance and the remarks ahead of the questions showed the Detroit automakers CEO's were in a disconnect as they did not come forward with an acceptance of past mistakes on fuel efficiency, lack of vision on energy conservation, and failure of union and management to address benefits and work rules that were obsolete a long time ago, relying too heavily on lobbyists and on the plea by Michigan senator Debbie Stabenow for aid. Failure to do this and relying too heavily on the job losses and economic threat may have alienated many senators who are outside the midwestern region where most of the Detroit automakers are concentrated....

LyrArc Article Gist
GE's consolidated tax rate from 2005 to 2009 was 11.6%, including foreign, local and state taxes.

LyrArc Article Gist
G.E. reported profits of $5.1 billion from operations in the U.S. in 2010. Its American tax bill? G.E. paid no taxes, claiming a tax benefit of $3.2 billion. G.E. does this by lobbying for tax breaks, aggressive strategies for reducing taxes including concentrating its profits offshore, and innovative accounting. G.E. has a large tax department, which some call the nation's largest tax law firm. Other firms are following the same practices The corporate share of the U.S. tax receipts has fallen steeply over the years- down to 6.6% in 2009 from 30% in the 1950's. This raises all sorts of questions in the current budget deficit situation facing federal and local governments.

LyrArc Article Gist
The corporate income tax rate for American companies is 35%. But many American corporations do not pay 35%. G.E. is likely to pay no federal income tax in 2010. G.E. Capital lost billions during the financial crisis and it is using a tax loss carry forward. It is also using a tax break called the active financing exception which allows U.S. companies to avoid taxes on overseas profits if those profits are made by actively financing some activity or deal, a tax loophole created in 1997 that G.E. lobbies hard to keep. For G.E. the worldwide tax burden was 7.4%. Google also pays a low tax rate. Robert Willens, a corporate tax expert, says the typical multinational corporation pays about half the stated tax rate.

LyrArc Article Gist
This WSJ story provides a fascinating look at how Italy planned for too long, but failed to finally execute the final step of using the submersible steel floodgates that were already built to tackle just the kind of flooding that happened recently.  Problems include the use of submersible steel floodgates that would go back under water  after use in a flood, causing an additional complication to building the floodgates. The city itself was not entirely behind the plan so that execution was delayed. The politics and corruption added additional delays that astonishingly delayed the plan for over 10 years. About 80% of Venice was flooded with waters rising 6 feet above normal levels on November 12, 2019. It is hard to believe that 78 yellow steel barriers stayed on the seabed instead of blocking the three points at which water could enter from the sea into Venice. Most of the area has normal land barriers and the steel gates were designed to block water from entering at the smaller points that separate land barriers. It is also unbelievable that the plan started after a bad flood in 1966, construction beginning in 2003 after approval by over 12 public bodies, expert panels and courts on the complicated design. Costs went up as years passed from $1.7 billion to $5.5 billion. Ordinary Italians say Rotterdam has similar problems and has dams and no flooding, that the underwater design of the gates did not make sense just for aesthetics. Some experts say the underwater design doomed the project by making it costly and difficult, bureaucratic delays did the rest. The longer the delays and higher the cost the faster it eroded support in Venice and Italy, leading to this improbable result of building the flood gates with the underwater design, testing them but not making it operational in the final step, and not authorizing the use on November 11, 2019. The gates were in disuse astonishingly for so long that rust was discovered at one point.  Venice is now losing much of the population near its canals with only 50,000 remaining from a one time population of 171,000. The latest flood damage is over $1 billion and inexplicable after so much effort building the 74 yellow floodgates under water. ...

LyrArc Article Gist
DW.com takes a deeper look at the conflict in Nagorno-Karabakh, an autonomous region of Azerbaijan now populated and controlled by ethnic Armenians. It has grown rapidly in the last decade at around 10% annual growth and 17% in 2017 with an influx of ethnic Armenians who have settled in the region with its higher average incomes. Karabakh has a large mining industry which provides employment for Armenians moving into Karabakh.  During the 1920's Azerbaijan and Armenia were part of the Soviet Republics which lasted till 1991. The Soviets made Karabakh part of Azerbaijan SSR with considerable autonomy. Since 1991 several wars have taken place with the largely Armenian population declaring itself independent of Azerbaijan.  Azerbaijan is three fifths Shiite and one third Sunni with close ties to its southern neighbor Iran, leading to efforts by Iran to mediate the conflict. There are social and political overtones for the conflict. Azerbaijan oil exports have been hit hard by the drop in the oil price and drop in global oil demand. Armenia has seen remittances from its 11 million Armenians living overseas drop by about 40%. Both countries face endemic corruption. Azerbaijan get 90% of export revenues from oil which is 40% of GDP. EBRD estimates exports fell by 25% in the first quarter and GDP will decline by 3% this year. Strict lockdown has also hurt the economy hard. Armenia expects a decline of 3.5% in GDP in 2020. Armenia is trying to tackle corruption with reforms since the Velvet Revolution in 2018. The conflict is a distraction from the economic and political situation, says Caucasus region expert Sylvia Stober. It could be politicians making a point as economic and social conditions deteriorate, with outside influence. Turkey has backed intervention in Libya and now supports Azerbaijan a Muslim neighbor.  Russia has a defense pact with its Orthodox Christian neighbor Armenia. In 2018 a short war lasted only 4 days when Russia intervened. This time Russia which has a defense pact with Armenia is looking to have Armenia join its Eurasia Economic Union. Armenian prime minister Nikol Pashinyan looks to Europe for closer ties. Russia supplies both warring parties in this conflict and acts as a mediator in a ceasefire. Outside influence is aggravating the conflict which has now displaced about half the population in Karabakh.   ...

LyrArc Article Gist
Emmerentze and Germano provide this exceptional look with wide ranging interviews at a brand which has failed to make headway in the U.S. market for 2 decades, after being a prominent brand in the 70's and slipping ever since. Adidas share price declined by 38% in 2014, declining to 57 euros, recovering to 70 euros by March 2015. The economic crisis in Russia affected Adidas sales. A major problem area is the U.S. market where Nike has made major progress, and other competitors such as Under Armour and Skechers are rapidly increasing market share. Adidas is now No. 3 behind Under Armour in retail sports apparel and footwear sales, according to Stern Agee and SportsScanInfo. The U.S. operation has been tightly controlled from headquarters in Herzogenaurach, in a rural part of Germany. During CEO Herbert Hainer's leadership since 2001 share price quadrupled but the U.S. operation has languished, because say retail experts the operation does not reflect the culture savvy management style of Nike and other U.S. competitors. U.S. sales are 43% of the global athletic apparel and footwear market, and the global market of $51.6 billion moves in relation to fashion trends set in the U.S. market. CEO Hainer and managers in Germany are seen as very focussed on spreadsheets and analytical approach to sales in over 100 countries. The only design studio outside headquarters in Portland, Oregon, was setup in Brooklyn, N.Y. recently, and the 4th CEO during Hainer's leadership since 2001 is the first to be given some degree of autonomy in making design and marketing decisions. Nike's market share in athletic footwear has increased from 35% in 2005 to 47% in 2014, as Adidas remains stuck at about 10%. The Reebok acquisition for $3.8 billion in 2005 is seen by U.S. Adidas managers as a distraction. Retail store executives visiting Germany say Adidas product cycle from design to product introduction of 18 months was just too long to meet the rapidly changing preferences in the U.S. This is now being cut to 6 months. In recent years Adidas has expanded rapidly in emerging markets but management has failed to grasp the fact that trends in growing markets such as China, India, Brazil and Mexico are set by pop culture trends in the U.S. ...

LyrArc Article Gist
Daniel Barenboim on Beethoven's Ninth Symphony. It was performed 200 years ago. The Ode to Joy section of the Ninth is the anthem of the European Union. Originally Beethoven wanted to dedicate it to the ideals of the French Revolution. Beethoven struggled with hearing loss after 1812. Many of his works were written during the period in Bonn around 1780-1792 in Bonn near Cologne where he was born, followed by his period in Vienna composing works for the Viennese court. He was a contemporary duringthe Napoleonic period of Mozart, Haydn, and the writer Goethe who was from Frankfurt. Because of struggles with his hearing loss Beethoven's symphonies record both the highs and the lows, the triumphs and the periods of loss, the nature of the human condition in a period of great social and economic awakening in Europe that led to the Industrial Revolution and modern Europe.

LyrArc Article Gist
New joint venture for Russia to supply partly made titanium parts to Boeing for its Dreamliner and for increased collaboration. Formation of 50-50 joint venture between VSMPO-Avisma and Boeing for supply of $18 billion in aircraft lightweight parts.

LyrArc Article Gist
A company in San Jose, California, SunPower, which manufactures solar cells, can convert 22% of solar energy into electricity. The industry average is 18-20%. Companies like Microsoft are installing solar panels on their roofs to conserve on electricity consumption.

LyrArc Article Gist
Obama wins South Carolina Edwards home base by 55% to Clinton's 27%, and Edward's 18%. Obama wins 24% of the white vote. What happens when the white men who voted for Edwards choose between Clinton and Obama ? As many white men voted for Obama as for Clinton. And 70% of white voters in exit poll by Edison/Mitofsky for the National Election Pool of television networks say they would be satisfied if Obama wins the Democratic nomination. When asked if the country was definitely ready for a black President 25% of white voters said yes. Obama's coalition of young people, black people, and white male voters, alienated by the Clintons and working through the internet and other media outside of the establishment, may resemble the one put together in South Korea by young people to put an outsider in the President's position a few years ago.

LyrArc Article Gist
This analysis in the NYT shows that Labour won 412 seats in the British Parliament with only one third of the vote, and only 60% of voters participating. And Reform UK of Nigel Farage with 14% of the vote across UK won only 4 seats. The Greens won only 4 seats with 7% of the vote. The Conservatives with 23% of the vote won 120 seats. Labour's share of the youngest vote in the youngest seats actually dropped from 51% to 44%, with votes going to Reform UK and to the Liberal Democrats. Conservatives dropped across the board but still did better with older voters. And the Liberal Democrats astonishingly gained about 60 seats with just a slight increase of votes of only 0.08% increase in votes from 11.6% to 12.2% pushing its seat count from 11 in 2019 to 71 seats in 2024. This is why Keir Starmer has won big yet knows he has alot of work to do and promises stability as well as change that begins today for Britain, a cautious approach that also seeks to make further gains in the future by winning the hearts of the British people and also bringing relief for cost of living to the British public and good government. Building infrastructure and public services will come as Labour wins the confidence of Britons with a larger vote share in the coming years to support sweeping changes that Britain needs for infrastructure health, education and public services. ...

LyrArc Article Gist
UK's Keir Starmer makes 6 pledges to the British people- "Living standards should rise so that growth was felt by everyone, everywhere." Real household disposable income per person, GDP per capita by 2029. Build 1.5 million new homes in 5 years and fast track 150 planning decisions on major infrastructure projects. 92% of patients have to wait no more than 18 weeks for routine operations and appointments by March 2029. 29,000 officers for neighborhood policing and stopping anti-social behavior-1 for every 8000 people. 95% of low carbon electricity generation by 2030. 5% gas generation kept in reserve for unanticipated situations. It is Boris Johnson's target from 2022 in contrast to DJT's reverting to oil and gas to 2027 with industry following its continued but slower shift to gas and wind/solar. A pledge on living standards as the goal not growth is what Starmer sees as the dire need today. Growth that would put the UK ahead of all countries in the G7 is put aside for raising living standards for ALL the British people. A recognition that the two can mean very different things. Under the current plan fufilfillment of pledges is seen in the growth rate of 0.5% a year that is set in 2024. ...